Market Report U.K.

UK Chain Hotels Market Review - February 2014

With the UK hotel market posting a consecutive secondmonth of strong growth, hoteliers in the East of thecountry experienced year-on-year increases across allkey performance indicators and recorded the highestgrowth in gross operating profit per available room(GOPPAR) of 48.3% in February, according to the latestdata from HotStats.

HotStats With the UK hotel market posting a consecutive secondmonth of strong growth, hoteliers in the East of thecountry experienced year-on-year increases across allkey performance indicators and recorded the highestgrowth in gross operating profit per available room(GOPPAR) of 48.3% in February, according to the latestdata from HotStats.

A combined surge in occupancy of 5.7 percentagepoints and growth in average room rate (ARR) of 3.1%resulted in an increase in revenue per available room(RevPAR) of an impressive 12.7% to £43.42. With nonroomsrevenues also jumping, total revenue peravailable room (TRevPAR) rose by 11.0% to £76.31,representing the fourth consecutive month of year-onyeargrowth for this metric.

This increase in revenue performance was furtherenhanced by effective payroll management and efficientoperating cost control with departmental operating profitper available room (DOPPAR) climbing by 16.6% to£39.22. Although overheads per available room rose by2.6%, profit conversion went up from 14.9% to 20.0%delivering this impressive GOPPAR growth.

Edinburgh hotel market continues to shine

In February, hoteliers in Edinburgh registered a 12thconsecutive month of year-on-year improvement in bothTRevPAR and GOPPAR of 10.5% and 22.6%respectively, underlining the strength of this market,according to the latest data from HotStats.

RevPAR increased by 9.4% driven by a 4 percentage point increase in occupancy to 66.8% and an uplift in ARR of 2.8% to £80.99. With meeting room hire revenue per available room remaining flat, additional revenue per available room deriving from food (+15.5%) and beverage (+21.0%) helped to boost TRevPAR by 10.5% to £91.02. 

Astute payroll and operating cost control combined with travel agent commission per room let decreasing by 2.4% to £6.62 resulted in DOPPAR increasing by 12.1% to £43.96. As a result, GOPPAR leapt up by 22.6% to £16.19.

Oxford hotels posted strong results

Hotels in Oxford achieved positive year-on-year changes in all key performance indicators in February with TRevPAR and GOPPAR increasing by 12.3% and 20.3% respectively, according to the latest data from HotStats.

Significant growth was recorded in both occupancy (+5.3 percentage points) and ARR (+4.6%) leading to a 12.4% jump in RevPAR, further supported by similar improvements in ancillary departments and most notably from food revenue per available room (+22.2%), TRevPAR grew by 12.3% to £106.38.

Despite increases in food cost of sales (+4.2 percentage points) and F&B payroll (+1.4 percentage points) reducing F&B profit conversion to 20.9% from 25.9%, an increase in rooms departmental profit conversion (+3.0 percentage points to 71.1%) helped drive a 12.4% DOPPAR increase to £58.98. With total payroll decreasing by 0.6 percentage points, GOPPAR rose by 20.3% to £33.08.

Graph - UK Chain Hotels Market Review - February 2014

Click here for full report (PDF)

For an inside view of a local or regional market place in the hotel sector, bespoke HotStats reports are available. Terms and conditions apply. Visit www.hotstats.com to view a sample report.

HotStats provides two reporting tools to hoteliers:

Our unique profit and loss benchmarking service which enables monthly comparison of hotels’ performance against their competitors. It is distinguished by the fact that it provides in excess of 100 performance metric comparisons covering 70 areas of hotel revenue, cost, profit and statistics providing far deeper insight into the hotel operation than any other tool.

Our latest innovation in daily revenue intelligence, MORSE. Amongst its reporting are daily and highly granular market segmentation metrics as well as distribution channel and source of booking analysis. It takes daily market intelligence to a whole new level.

For more information contact:

Tony Oliveira
Business Development Manager
+44 (0)207 892 2234
tony.oliveira@hotstats.com




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